Ecobank Kenya cut its net loss in 2013 to Sh881 million from the previous Sh1.05 billion as income rose by 86 per cent. Photo/FILE
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Higher operating expenses arising out of its expansion drive, however, ate into earnings. Total operating expenses rose from Sh2.4 billion in 2012 to Sh2.9 billion in 2013, compared to total income that rose from Sh879 million in 2012 to Sh1.6 billion last year.
Ecobank Kenya cut its net loss in 2013 to Sh881 million from the previous Sh1.05 billion as income rose by 86 per cent.
Higher operating expenses arising out of its expansion drive, however, ate into earnings. Total operating expenses rose from Sh2.4 billion in 2012 to Sh2.9 billion in 2013, compared to total income that rose from Sh879 million in 2012 to Sh1.6 billion last year.
The bank grew its loan book to Sh18.5 billion from Sh14 billion in 2012 helped by customer deposits that grew by Sh3.9 billion to stand at Sh25.4 billion.
The bank has grown its branch network to 29, with chief executive Ehouman Kassi saying in an earlier briefing that the lender considers 40 to 50 as the optimum number of branches.
“Despite the growth in balance sheet, revenues and branch network, the full year performance of the bank remains impacted by the prevailing high cost of funds as well as costs related to prudent financial management,” said Ecobank Monday.
The bank has also announced plans to inject additional capital into its Kenyan business this year, with Mr Kassi putting the figure at Sh8.6 billion ($100 million).
The bank injected into its Tanzanian and Ugandan affiliates some $50 million each in the last quarter of 2012.
Investment
Ecobank will also open its Kenya investment banking arm by June this year, eyeing an extra income stream from the deal making segment, especially in the oil and mineral sectors.
Meanwhile, Citibank Kenya saw its net earnings drop sharply in 2013, closing the year with a net profit of Sh2.99 billion compared to 2012 earnings of Sh4.42 billion.
Its income fell by Sh2 billion to stand at Sh7.5 billion, mainly on reduced interest income from loans and advances. The bank, however, grew its loan book by Sh1 billion to Sh24.3 billion.
Operating expenses rose by Sh326 million for the year driven by an increase of Sh196 million in employee costs, which stood at Sh1.37 billion.
Citibank recently moved its specialised wealth management unit from Nairobi to Singapore in what it termed as a ‘business realignment’ move. The bank has been positioning itself to take advantage of the country’s nascent oil and gas industry.
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